Safety Pay Proposal Version4

Michael J. Williams Consulting

Product Introduction to U.S. Banks & PSP’s

A proposal to the SafetyPay Management Team

Presented July 7, 2009


Success of SafetyPay™ Outside of the U.S.A. and its Company Profile

SafetyPay™ is a Secure Payment Facilitator and clearinghouse benefiting online shoppers, online merchants and banks. SafetyPay™ allows shoppers to pay in local currency through their own trusted financial institution without the need for a credit card. The consumer never needs to divulge personal financial information to retailers. SafetyPay works behind the scenes to clear and settle the payment through bank partners. Outside the U.S., credit cards are not universally held. In most countries, card penetration and usage are in fact very small. Many cards issued in foreign countries can only be used in the market where they are issued and are deemed useless for most online shopping. Among the base of potential card-holding shoppers, security concerns limit shopping. Few countries protect consumers with legally-imposed liability limits for credit cards, leaving cardholders exposed to misuse of their information. Transaction security is cited as primary concern for not purchasing online. Even shoppers that overcome their uneasiness with card use are often kept from purchasing by fraud-filtering systems. Often only U.S. credit cards are allowed to limit fraud risk, leading merchants to restrict purchases with non-U.S. cards. Over 50% of the top 100 U.S. online retailers do not sell to customers with foreign cards.

Part of SafetyPay’s success OUTSIDE the U.S. Banking marketscan be attributed to being just that:

• OUTSIDE of the U.S.A.

• Credit cards issued by banks OUTSIDE the U.S.A.


How can SafetyPay™ leverage its strengths for a successful launch within the U.S.A.

U.S. Bank CardholdersConcerned about Fraud

and Identity Theft

Non- CardholdersNeed a reliable

payment alternative

All ShoppersConvenient access

to international e-tailers

U.S. MerchantsEliminates charge backs

Access to International customers

U.S. BanksNew payment option can

attract new customers and increase revenues


SAFETYPAY™ PENETRATION IN THE U.S.A.

There are 8,430 FDIC insured bank in the U.S.A. as of August 22, 2008

The banks are segmented according to assets on record as:

– < $100 million

– $100 million to $500 million

– $500 million to $5 billion

– $5 billion to $50 billion

– > $50 billion

In addition there are Payment Services Providers (PSP) which facilitate networks between banks, businesses and consumers

Who is the U.S. Banking Target Market for SafetyPay™?



Define business objectives, strategies and an implementation plan for acquisition activities

Identify current practices and benchmark these against those of other successful USA bank product introductions

Identify and prioritize opportunities which lead to specific answers to key questions and drive up acquisitions

1

2

3

How can we get our product accepted by USA banks?

How can we get a product program implemented and supported into the bank payment profit center?

How do we make the most of an acquisition program?

How can we utilize focused databases to produce inquiries that translate into sales?

How can we actively engage potential customers through a targeted public relations and information campaign?

Key questions for SafetyPay™ The SafetyPay™ Product objectives:



Scalable, impressionable and adaptable as they are “test and learned” for each campaign

Multi-faceted using proven methods to reach the decision makers

Readily available sales tools to aid the sales force in “closing the sale”

Conveys that SafetyPay will positively impact bank and PSP business both with increased revenue and enhanced goodwill

Strategies Tactics

Public Relations

Direct Marketing

E-marketing

Print advertising

Trade Shows

Sales Materials

Webinars

E-seminars


CREDENTIALS AND EXPERTISE THAT LEAD TO A SUCCESSFUL ENGAGEMENT

7

Partial Client Listing

15 years experience with leading banks and financial companies

10 years international banking experience

28 years launching successful B2B and B2C products and services

Direct Marketing, Web Marketing and e-commerce guru.


CREDENTIALS AND EXPERTISE THAT LEAD TO A SUCCESSFUL ENGAGEMENT

8

Partial Client Listing

15 years experience with leading banks and financial companies

10 years international banking experience

28 years launching successful B2B and B2C products and services

Direct Marketing, Web Marketing and e-commerce guru.

CONSULTING WITH MICHAEL J. WILLIAMS


The Diagnostic Needs Assessment





Data GatheringInvestigation

• Past Successes/Case Studies • Missed Opportunities• Current Techniques• Market Conditions• Competitive Environment• Economic Conditions• Regulatory Pressures• Staffing/Infrastructure





Evaluation


Evaluation& Analysis


• Key Strengths & Weaknesses • Gap Analysis• Target Marketing• Channels• Timing Considerations• Budgetary Constraints• Staffing & Sales Force• Training





Evaluation





Presentation of Recommendations

• Detailed Game Plan • Targeted Banks & PSP’s• Marketing Strategy• Advertising Strategy• Public Relations Strategy• Tactical Steps• Proposed Tool Kits• Suggested Collateral





Evaluation







Within two weeks SafetyPay will have actionable strategies andtactics, a virtual roadmap on how to best penetrate U.S.A. markets

TAKE ACTION




Initiate Recommendations

Recommendations& Game Plan

Develop Campaign Work Streams

Execute Rapid Value Initiatives

Provide Hands-on Direction & Training

TAKE ACTION


Evaluation




Within two weeks SafetyPay will have actionable strategies andtactics, a virtual roadmap on how to best penetrate U.S.A. marketsWithin two weeks SafetyPay will have actionable strategies andtactics, a virtual roadmap on how to best penetrate U.S.A. markets





Evaluation










Within ten weeks SafetyPay willhave a portfolio of documents toconduct sales campaigns in therecommended channels






$12,000.00

Intensive, hand-on research and analysis conducted on-site including interviews and meetings with key staff, culminating in the recommendations document.


Within ten weeks SafetyPay will have a portfolio of documents toconduct sales campaigns in the recommended channels

Hands-on direction and training; execution ofrapid value initiatives; development of campaignwork streams; and tool kits of customized collateralspecific to the recommended channels.

$40,000.00Inclusive of Diagnostic



1. The consultant will successfully have access and manipulate the data required for the analysis.

2. The consultant is given opportunity to meet with key SafetyPay Executives and their staff from Marketing, Sales, Operations Management (where relevant).

3. SafetyPay shares with the consultant all material (e.g. reports, insights) which are related with the project.

Dependencies Risks

1. The data quality does not meet all required standards to be able to carry out fully the analysis presented in this proposal

2. That internal time constraints does not meet agreed deadlines

3. The consultant is not able to access to all the data required for the project




SAFETYPAY™ PENETRATION IN THE U.S.A.CONSULTING WITH MICHAEL J. WILLIAMS






Evaluation






Recommendations& Game Plan




TAKE ACTION





Evaluation











Evaluation





Implementation of Recommendations

Within ten weeks SafetyPay will have a portfolio of documents toconduct sales campaigns in the recommended channels

Presentation Identifier.23Information Classification as Needed 2323CONFIDENTIAL - For Internal Use Only | July 2009

Project Dependencies and Risks

1. The consultant will successfully have access and manipulate the data required for the analysis

2. The consultant can have access to key SafetyPay Executives and their staff from Marketing, Sales, Operations Management (where relevant).

3. That SafetyPay shares with the consultant all material (e.g. reports, insights) which are related with the project.

1. The data quality does not meet all required standards to be able to carry out fully the analysis presented in this proposal

2. That internal time constraints does not meet agreed deadlines

3. The consultant is not able to access to all the data required for the project

Dependencies Risks

Presentation Identifier.24Information Classification as Needed 24

What happens in the initial phases of the project?

In this stage we will conduct a review of the focal areas by:

- Reviewing markets where SafetyPay is growing

- Conducting analysis of the success in those markets

Based on the initial review, we will present a list of potential projects to be discussed and prioritised

The work in this stage is focused on conducting follow-up investigations and evaluation of the prioritised projects from the investigation in Phase 1.

The objective is to determine the highest value projects based on cost to implement and value to SafetyPay.

We will create a report that presents a recommended list of projects with an overall roadmap.

We then work together to decide which projects to move forward, taking into time requirements and funding.

Play back the observations and insights we have collected.

Agree on the prioritized projects to move forward.

Objectives for meeting:

Evaluation

The activities within the process are arranged into three distinct steps, each one usually is 1-2 days in duration…

Wrap up with a meeting to review the action stepsWrap up with a meeting to review the action steps

1

2





Contents

I. Situation & background

II. Project objectives

III. Approach

IV. Timeframe, resources & costs

V. Approval


Who is the U.S. Banking Target Market for SafetyPay?

• There are 8430 FDIC insured bank in the United States as of August 22, 2008

• The banks are segmented according to assets on record as:

– > $100 million

– $100 million to $500 million

– $500 million to $5 billion

– $5 billion to $50 billion

– > $50 billion

• In addition there are Payment Services Providers (PSP) which facilitate networks between banks, businesses and consumers

Presentation Identifier.27Information Classification as Needed 2727CONFIDENTIAL Internal Use Only | July 2009

Situation

This proposal describes how to assist SafetyPay Inc. entry into the U.S. banking market with their proprietary payment product. It is a deliverable following our recent meeting where we discussed how to further support and assist SafetyPay management in improving their acquisition of key U.S. banks and Payment Service Providers (PSP).


Contents

I. Background & situation

II. Engagement objectives

III. Approach


V. Approval


Understand your business objectives, strategies and execution surrounding acquisition activities in your targeted USA bank and service suppliers

Identify your current practices and benchmark these against those of other successful USA bank product introductions

Answer SafetyPay’s key questions by identifying and prioritising opportunities that will specifically address driving up acquisition and continually test and learn to improve results

1

2

3

How can we get our product accepted by USA banks?

How can we get a product program implemented and supported into the bank payment profit center?

How do we make the most of a acquisition program?

How can we utilize focused databases to produce inquiries that translate into sales?

How can we actively engage potential customers through a targeted public relations and information campaign?

Key questions/objectives of SafetyPay™ The objective of this project will be to:

What are the objectives of this project?


Contents



III. Approach


V. Approval


Strategies for SafetyPay to gain access to the US Banking market

• The strategy that SafetyPay needs to use must be scalable, impactful and adapted as it “test and learns” for each campaign

• In order to penetrate the clutter and have a focused campaign, the sell-in strategy needs to be multi-faceted using proven methods to reach the decision makers

• All sales tools must be available to be readily utilized to aid the sales force in “closing the sale”

• The “benefit oriented” sales presentation must convince the bank or PSP that SafetyPay will positively impact their business both with increased revenue and enhanced goodwill


What are the tactics that SafetyPay needs to gain entry into US bank market

Public Relations – Press releases and articles placed in major trade publications and banking and financial journals, white paper on website, webinars and e-seminars with strong fraud prevention and credit risk mitigation message

Direct Marketing – Envelop mailing sent to key decision makers in banks and PSPs, followed by additional mailings

E-marketing – Targeted mail to pre-screen lists containing general information about the product and program with a link to the SafetyPay website

Print Advertising – Business-to-business space advertising with website, toll-free number and contact name.

Trade Shows – Investigate having a presence at banking related trade shows and events with a live demonstration

Sales materials – review the existing selling materials and update as needed


Suggested action steps for SafetyPay to penetrate the US banking market

1. Public Relations –

2. Direct Marketing –

3. E-marketing –

4. Print advertising –

5. Trade Shows –

6. Sales Materials –

7. Webinars and

8. E-seminars –


Suggested action steps for SafetyPay to penetrate the US banking market - continued

5. Trade Shows –

6. Sales Materials –

7. Webinars and

8. E-seminars –

9. Target a sales plan with goals and dates

a. Introduction: 50 banks/ 10 PSP

b. Rollout: 100 banks/ 20 PSP

c. Pool out: 1000 banks/ # PSP


What happens in the initial phases of the project?

In this stage we will conduct a review of the focal areas by:

- Reviewing markets where SafetyPay is growing

- Conducting analysis of the success in those markets

Based on the initial review, we will present a list of potential projects to be discussed and prioritised

The work in this stage is focused on conducting follow-up investigations and evaluation of the prioritised projects from the investigation in Phase 1.

The objective is to determine the highest value projects based on cost to implement and value to SafetyPay.

We will create a report that presents a recommended list of projects with an overall roadmap.

We then work together to decide which projects to move forward, taking into time requirements and funding.

Play back the observations and insights we have collected.

Agree on the prioritized projects to move forward.

Objectives for meeting:

Evaluation

The activities within the process are arranged into three distinct steps, each one usually is 1-2 days in duration…

Wrap up with a meeting to review the action stepsWrap up with a meeting to review the action steps

1

2





Phases of the Project

I. This is estimated to be a 10-12 week project in order to fulfill the agreed upon assignments.

II. First phase will be a project plan that describes the tasks to be accomplished each day that rolls up into weekly milestones

III. It is recommended that the project is on-site at SafetyPay corporate office in order to utilize the IP and information resources

IV. Initial success will be measured by the number of inquiries/ responses received by channel. Ultimate success will be measured by banks/PSP incorporating SafetyPay into their payment options program.


The project outputs are proven based on previous experience and client engagements

Opportunities will be identified across a range

of areas: marketing, communications, sales training, tele-services

ClientsThe bank customer

communication plan will be critical to maximize

value and ensure strong bank customer engagement


Contents



III. Approach


V. Approval


Project Organisational Structure

Given the importance of this assignment, the following team and approach.

Project SponsorManuel Montero

Project ManagerMichael Williams

Responsibilities

• Provide overall direction and thought leadership for the project

• Approve final recommendations• Champion the project throughout SafetyPay• Provide periodic (weekly) direction and thought leadership

for the project• Approve overall project plan, approach, etc.• Appoint/secure SafetyPay project resources

• Provide day-to-day direction for the project• Work with Project Teams as necessary• Participate in working sessions as necessary• Lead the analytical work and recommendation development• Prepare, support and follow-up on sessions• Participate in assessment, identification and prioritization • Prepare weekly status reportsSupport

The SafetyPay marketing and sales groups


Project timing and cost

Timing:

It is estimated that this project will take 10-12 weeks to execute (subject to availability of SafetyPay staff and management).

Financial Considerations:

Project $ cost

SafetyPay introduction into US banks $4000.00/week estimated to be $40,000 - $48,0000 project

Follow-on implementation of recommendations To be determined


Contents



III. Our approach


V. Approval


Approvals

We hereby agree to the terms set out in this agreement.

……………………………… ………………………………Michael J. Williams

Consultant

For and behalf of SafetyPay Inc.

……………………………… ………………………………

Manuel Montero Date

CEO

SafetyPay Inc.


Questions and next steps

1. Agree on timetable to submit the final proposal

2. Agree on the project start-date and execution timetable

3. Begin the project

Suggested next stepsQuestions?

Safety Pay Proposal Version4

Documents

Transcript of Safety Pay Proposal Version4